Don’t Wait, Renew: The Smart Move for Business Energy Contracts

In the fast-paced world of business, it’s easy to overlook the expiration date of your energy contract. Yet, failing to renew your business energy contracts in a timely manner can lead to a host of problems, including skyrocketing bills and unnecessary stress.

At Troo, we understand the importance of staying ahead in the energy game. Let’s take a closer look at why renewing your business energy contracts promptly is not just a good idea but a crucial one.

Understanding the Risks

Many business owners are unaware of the risks associated with allowing their energy contracts to lapse. When your current contract ends, you are automatically placed on deemed or out-of-contract rates by your energy supplier. These rates are typically much higher than the rates negotiated in a new contract, leading to inflated monthly bills that can put a strain on your bottom line.

The Financial Impact

The financial implications of being on deemed rates can be significant. According to Ofgem, businesses who find themselves on deemed rates can pay up to 80% more for their energy compared to those on negotiated contracts. This unnecessary expense can eat into your profit margins and hinder your business’s growth potential. By renewing your energy contract on time, you can avoid these inflated costs and allocate your budget more effectively.

Securing Favourable Rates

One of the key benefits of renewing your energy contract promptly is the ability to secure favourable rates. Energy prices are subject to fluctuations due to various factors such as market demand, geopolitical events, and environmental regulations. By renewing early, you lock in the current rates, shielding your business from potential price hikes in the future. This proactive approach not only provides financial stability but also gives you peace of mind knowing that your energy costs are predictable.

Avoiding Disruption

Another reason to renew your energy contract in a timely manner is to avoid any disruption to your business operations. Switching to deemed rates can occur without warning once your contract expires, leaving you scrambling to find a new deal amidst the chaos. This can lead to delays in service, administrative headaches, and unnecessary stress for you and your team. By renewing ahead of time, you ensure a smooth transition without any interruptions to your energy supply.

The Importance of Strategic Planning

Renewing your business energy contracts in a timely fashion is not just about saving money—it’s about strategic planning for the future. Energy is a fundamental aspect of any business operation, and managing it effectively can give you a competitive edge. If you have a business energy contract due to expire within the next 12 months, it is worth checking if you can secure your next contract now. By staying proactive and keeping a close eye on your contract expiration dates, you can ensure that your business remains agile and resilient in the face of changing market conditions.

At Troo, we are committed to helping businesses navigate the complex energy landscape and make informed decisions that drive your success. Don’t wait until it’s too late—renew your energy contract today and take control of your energy costs.

Contact Troo today to learn more about how we can assist you with your business energy contracts and help you save on your energy bills. Call us free on 0808 164 2222 or drop us an email at hello@troocost.com